I noticed something interested about my 25-position “all bullish” portfolio (started a few days into 2024):
See, I added that rightmost column, which shows the percentage of overall profits/losses a given stock accounts for against the entire P/L of the portfolio. There are 25 positions, and Coinbase is just 1 of them (in other words, 4% of the portfolio). In spite of that, it accounts for about 50% of all the profits. In other words, it is working about twelve times as hard as everyone else, in a manner of speaking.
I imagine this is probably commonplace in a diverse portfolio: that you have one real champion which is doing all the heavy lifting. Of course the problem is twofold:
(a) we never know which one it’s going to be
(b) we wish we put way more into it at the outset!
